Tax Season tips for the high cost of Alzheimer’s & dementia

(April 3, 2018- New York, New York)

As tax day approaches, the Alzheimer’s Association encourages families to proactively plan for the financial impact of Alzheimer’s and dementia – the most expensive disease in the country. An estimated 5.7 million Americans are living with Alzheimer’s, according to the 2018 Alzheimer’s Disease Facts and Figures Report. The costs associated with Alzheimer’s can be staggering, with average lifetime out-of-pocket costs for health care and long-term care services for families reaching $95,441.

Queens resident and life-long New Yorker Teri Graham personally faced the cost of care and challenges managing the finances for her mother, Margaret Graham, who lived with Alzheimer’s for years after her husband passed away. A pattern of forgetting little things had more serious consequences when bills were not paid and financial records, including a social security card and Medicare information, were misplaced. “I had no idea what the progressive symptoms of Alzheimer’s were, and by the time unpaid bills were piling up, my mother could no longer help me find and organize her financial records” stated Teri. “Doctors can address the symptoms of dementia, but they don’t tell you how to manage finances and the practical necessities of life. I didn’t know where to turn until a friend suggested I reach out the Alzheimer’s Association for help.”

On average, people live with Alzheimer’s 4-8 years after a diagnosis and many for longer. Disease-related costs can jeopardize a family’s financial security and many families and caregivers make enormous personal and financial sacrifices.

Making plans in advance can help ease the burden on loved ones. Teri remarked, “After my mother passed away, I felt compelled to help others who are facing the challenges I did as a family caregiver. I volunteered to be an Advocate for the New York City Chapter of the Alzheimer’s Association, meeting with Rep. Joe Crowley and others to tell my story. It has been very rewarding for me, and given me a sense of purpose.”

The Alzheimer’s Association recommends the following tips to plan for the future:

• Look at retirement planning as a time to think about how to prepare for the need for long-term medical care. After an Alzheimer’s diagnosis, your options may be more limited.

• Conduct an inventory of your financial resources (savings, insurance, retirement benefits, government assistance, VA benefits, etc.). A financial planner or elder care attorney can help with this.

• Enhance your understanding of the role and limitations of Medicare, Medicaid and other insurance options. A 2016 Alzheimer’s Association report found that nearly 2 out of three people incorrectly believe that Medicare helps pay for nursing home care, or were unsure whether it did.

• Once you understand what you have for financial resources and what you can afford, make a plan with your family or a close friend for how to access care.

• If you are caring for someone living with Alzheimer’s, learn about income tax breaks for which you may qualify. Caregivers likely pay for some care costs out-of-pocket. Because of this, you may qualify for tax benefits from the Internal Revenue Service (IRS). Tax rules are complex and can change. Be sure to get advice from your tax adviser or accountant before filing your returns

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About the Alzheimer's Association
The Alzheimer's Association is the leading voluntary health organization in Alzheimer's care, support and research. Our mission is to eliminate Alzheimer's disease through the advancement of research; to provide and enhance care and support for all affected; and to reduce the risk of dementia through the promotion of brain health. Our vision is a world without Alzheimer's®. Visit www.alz.org or call 800.272.3900.